Tax Planning in Canada 2018

2018: The Year for Effective Tax Planning

February 13, 2018

I am a proud Canadian. I love this country but I’m quite concerned about government tax policies that promote the idea that 1% should be able to subsidize the remaining 99%. I’m all for paying my fair share of taxes but when governments can literally seize more than 50% of your earnings, that is not fair. The problem with democracy is the notion “Our solution becomes your problem” is real if enough people support a particular platform. The 1% notion is absurd. There are approximately 270,000 Canadians* who would qualify for that category. Imagine the city of Saskatoon (250,000)** subsidizing the rest of the country? The math and the premise simply don’t add up.

I met with Finance Minister Bill Morneau at a business meeting in Toronto before Christmas and I asked how he can compare Canadians that are high income (professionals / small business owners) to the people like himself who have millions in net assets in and out of the country? His response is the average Canadian make $50,000 per year so if you make over $200,000 per year, you’re rich. He believes a billionaire or someone who inherited their wealth are the same as your small business owner who have little assets but make a good income. You may think someone that owns their own business that earns more than $200,000 is rich but consider they don’t qualify for EI, have no gold plated pensions and they work a lifetime to hopefully sell their business to use as their pension when they retire. If the government takes $100,000 for income tax, the $100,000 left over isn’t much to live on and create a nest egg to retire based on the risk. The biggest difference between a small business owner and an employee is when an employee fails, they lose their job; when a small business owner fails, they lose their house.

As I said before, people have to pay their fair share of tax. That being said, we also believe that every Canadian should take advantage of any tax credit or deduction the government will provide you. We see three strategies:

Maximize your registered funds

Invest in opportunities that provide capital gains to reduce tax paid. This is one reason the public markets have had a run but it comes with volatility

Invest in little known provincial and federal tax credits that provide a way to invest in your local community by investing in innovative new economies

We have three strategies that use these little known provincial and federal tax incentives / deductions but we will share one of those ideas with you.

Alberta and BC have done one thing right; they have created tax incentive plans to help create diversified economies by allowing residents to invest in their own economy.

Please take a look at this 2 minute video as it will explain how you can receive up to 80% ROI*** in Year 1 of your investment thanks to this two part tax strategy. If you live in Alberta or BC, if you want to invest in innovative local businesses, contact us at invest@triviewcapital.com to see if you qualify.

Remember, it’s not how much you make, it’s how much you keep!

Craig S Burrows, ICD.D
President & CEO
TriView Capital Ltd.

*CANSIM Table 204-0001) ** Wikipedia Top 100 Cities in Canada *** Based on Canadian tax payer at 50% tax bracket

Disclaimer: This communication is for information purposes only and is not, and under no circumstances to be construed as an invitation to make an investment in any securities, nor does it constitute a public offering to sell securities or any other products described herein.

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